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26−34% reduction in CO2 emissions by 2020, alongside an 80% reduction by 2050 as stated in the Climate Change Act (DECC, 2008). Regardless of the economic and environmental benefits of waste heat recovery, it is also thermodynamically important to recover waste heat from the process industries. Thermodynamically, the recovery of waste heat helps not only to improve the energy utilization factor of the system, but also minimize its entropy generation. Entropy generation minimization is a relatively new thermodynamic principle based on the second law of thermodynamics. According to the second law of thermodynamics, the entropy of an isolated system can never decrease (Kotas, 1985).   0 1-1 For systems which interact with the environment, this increase in entropy causes irreversibility in the system, giving rise to loss of performance. This irreversibility or loss in performance occurs as the system generates entropy into the environment as a result of heat loss. The entropy can be reduced by reducing any energy loss in the system. For example, if we consider a simple thermodynamic system where heat is generated to provide heating application while the unused heat is emitted into the environment as waste heat (see Figure 1–4): Thermodynamically, the Energy Utilization Factor (EUF) of the system can be calculated from the first law as 12

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